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eBay United


									United States in 2003/4, reported consumer losses due to fraud amounted to $200
million, half of which involved online auctions (The Economist, 2005)

There are measures that users of e-Bay can take to protect themselves from being
victims of fraudulent activity. These include:
     Check out the seller or buyer through feedback from other users;
     Do not bid too high since sellers can get agents to bid on items to artificially
        raise the price;
     Establish whether or not the item bid for is insured;
     Find out where the trader is based;
     Do not pay by money transfer services, pay by credit card or via PayPal
                        PROS                                 CONS
PRESENT               Strength                            Weakness
             First-mover advantages in            Managing expansion into
              online auction market;                key markets such as Japan;
             Global brand awareness;              Communications with
             Network externalities created         professional traders who
              by developing a community of          are reliant on the e-Bay
              buyers and sellers;                   website;
             Brand loyalty of buyers and          Understanding cultural
              sellers because of quality of         differences in foreign
              service;                              markets.
             Economies of scale from huge
              customer base;
             Profitable from first month of
             Acquisition of specialist firms
              to create synergy and provide
              value-adding and
              differentiated services;
             Conservative management

FUTURE             Oportunities                             Threats
             Expanding services;                  Security breaches and
             Expanding internationally,            fraud;
              especially in the growth             Intensity of competition;
              markets of China and India;          Pressure to meet
             Forming alliances with other          expectations of
              firms to manage expansion.            shareholders, stakeholders
                                                    and customers;
                                                   g Pressure to maintain
                                                    growth rates;
                                                   Pressure to maintain profit
                                                   Retaining key management

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